As fuel prices rise steadily and the value of oil continues on an upward spiral as we climb out of recession, many commentators fear a collapse in the value of four wheel drive vehicles on the scale similar to those witnessed in 2008. This may be true, the world is still a very uncertain place and many people still don’t believe we are on the road to recovery. With VAT set to revert back to 17.5% and the scrappage scheme ending soon, there is certainly reason for caution but before we get too panicky we need to remember that many of the problems affecting car values were related to oversupply and this was no different in the luxury 4wd sector. So dealers and car makers had to react, not only to rising prices and the imminent recession but also overstocking.
The fact that the new car market has probably now corrected itself to a far more realistic level means that although the aforementioned warnings on fuel and duty will still have some affect we don’t believe dealers will be under anywhere near the same pressure to panic sell cars because there is simply not the same volume of stock about.
Most importantly in the trade there is an old saying which is especially relevant to the luxury and 4wd market, and that is if you can’t afford to run it, then you can’t afford to buy it! We think this will be more relevant than ever this time around and although in recent months these cars have been fetching a premium because of such scarce quantities, earlier in the year these cars were selling very cheaply indeed and therefore it is hardly like buyers have now paid massively over the odds.
It will just be a question of sitting tight and seeing it through, a lot o people may find the notion unpalatable but like it or not 4wd vehicles are here to stay.
As with any car it has just become more important to select the right one to suit your needs and your budget.